Maritime risk gets $20B lifeline
Chubb disclosed the structure of a $20 billion U.S.‑backed maritime insurance facility built with the U.S. DFC to cover shipping — a capacity play as war and geopolitical risk push up premiums for global supply chains. The move comes as U.S. carrier availability and naval deployments are strained, which markets say is forcing insurers to reprice war risks and seek state‑backed solutions. (lifeinsuranceinternational.com) (businessinsider.com)
Chubb will act as lead underwriter and explicitly “manage the facility,” including setting pricing and terms, assuming risk, issuing policies for eligible vessels and cargo, and handling all claims. (prnewswire.com) The U.S. International Development Finance Corporation named Chubb lead underwriter on March 11 and described the program as a revolving reinsurance offering that will insure losses on a rolling basis up to approximately $20 billion. (dfc.gov) Chubb’s disclosure says the facility will cover war marine risks across hull & machinery and cargo and has been expanded to include war P&I/liability cover after initial plans focused only on hull and cargo. (prnewswire.com) Moody’s warned that excluding liability would have been a “deal-killer” for many shipowners moving crude through the Strait of Hormuz. (insurancejournal.com) DFC will coordinate a consortium of American reinsurers to sit behind Chubb, with additional U.S. insurer partners to be disclosed in the coming days. (dfc.gov) Industry commentary notes it is unclear whether Lloyd’s and the London market will participate as reinsurers. (insurancejournal.com) Access to the cover is limited: the facility will apply only to vessels that meet eligibility criteria set by the U.S. government and will be available to ships transiting the Strait of Hormuz only under certain conditions. (prnewswire.com) DFC CEO Ben Black framed the program as intended “to help get energy and trade flowing again,” while Chubb CEO Evan Greenberg reiterated Chubb’s role in leading and managing the initiative; Chubb noted it operates in 54 countries and employs approximately 45,000 people worldwide. (dfc.gov) (prnewswire.com)
